Future To Dispose Of Business 2.0 In Debt Reduction Exercise

Future Network is to sell the US Business 2.0 magazine, brand and related conference and online activities to Time Group in a move designed to reduce Future Network’s debt. The initial cash consideration from Time will be £48.8m, with additional considerations dependent on financial performance until the end of 2006.

The deal is expected to bring net proceeds to Future of £34.7m which will be used to help ease debt, which at 31 December 2000 stood at £68.9m. Last year accounting errors uncovered at the group’s French subsidiary and subsequent profits warnings had catastrophic effects on the group’s share price, which, having peaked at over £9 in February 2000, is now unable to break the £1 barrier (see Sharewatch Focus: Future Network).

Future, with a portfolio including many special interest computer titles, has been a particular sufferer of the dotcom fall-out. Earlier this year it announced the closure or sale of 20 titles in a belt-tightening exercise (see Future Network Staves Off Further Debt With 20 Magazine Closures), while in April the German and European editions of Business 2.0 went to the wall. Today the company admitted that “market conditions remain challenging in both advertising and copy sales.”

Because of the size of Business 2.0, its sale will have to be approved by shareholders at an EGM.

Future Publishing: 01225 442 244 www.futurenet.com

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